The Power of Renegotiation and Monitoring in Software Outsourcing: Substitutes or Complements?
Published Online:31 Aug 2021https://doi.org/10.1287/isre.2021.1026
References
- (2017) D-Wave 2000Q system to be installed at quantum artificial intelligence laboratory run by Google, NASA, and Universities Space Research Association. Accessed March 12, 2021, https://www.dwavesys.com/press-releases/d-wave-2000q-system-be-installed-quantum-artificial-intelligence-lab-run-google-nasa.Google Scholar
- (2019) Ethics, bounded rationality, and IP sharing in IT outsourcing. Management Sci. 65(11):5252–5267.Link, Google Scholar
- (2005) Just right outsourcing: Understanding and managing risk. J. Management Inform. Systems 22(2):37–55.Crossref, Google Scholar
- Auditor General of British Columbia (2015) An audit of the Panorama public health system. Accessed March 12, 2021, https://www.bcauditor.com/sites/default/files/publications/reports/OAGBC_PanoramaReport_FINAL.pdf.Google Scholar
- (2013) The influence of software process maturity and customer error reporting on software release and pricing. Management Sci. 59(12):2702–2726.Link, Google Scholar
- (2016) Four types of custom software development contracts. Accessed March 12, 2021, https://www.linkedin.com/pulse/4-types-custom-software-development-contracts-bob-baird.Google Scholar
- (2001) Incentives vs. transaction costs: A theory of procurement contracts. RAND J. Econom. 32(3):387–407.Crossref, Google Scholar
- (2010) HP contract opens new round of IT outsourcing at GM. Auto. News (July 26), https://www.autonews.com/article/20100726/OEM01/307269953/hp-contract-opens-new-round-of-it-outsourcing-at-gm.Google Scholar
- (2010) Should we go our own way? Analyzing backsourcing flexibility in IT service outsourcing contracts. J. Management Inform. Systems 26(4):317–358.Crossref, Google Scholar
- (2016) Contract design choices and the balance of ex-ante and ex-post transaction costs in software development outsourcing. MIS Quart. 40(1):57–82.Crossref, Google Scholar
- (2014) Joint product improvement by client and customer support center: The role of gain-share contracts in coordination. Inform. Systems Res. 25(1):137–151.Link, Google Scholar
- (2018) Single-sourcing vs. multi-sourcing: The roles of output verifiability of task modularity. MIS Quart. 42(4):1171–1186.Google Scholar
- (2005) Contract Theory (MIT Press, Cambridge, MA).Google Scholar
- (2015) Michigan is suing HP because it says the company hasn’t finished a project after 10 years of work. Business Insider (September 21). Accessed March 12, 2021, https://www.businessinsider.com.au/michigan-sues-hp-for-decade-long-project-2015-9.Google Scholar
- (2014) Outsourcing information security: Contracting issues and security implication. Management Sci. 60(3):638–657.Link, Google Scholar
- (2012) Microsoft lowers barriers to entry, waits for developers to arrive. Wired.com (November 15). Accessed March 12, 2021, https://www.wired.com/2012/11/microsoft-lowers-barriers-to-entry-waits-for-developers-to-arrive/.Google Scholar
- (2017) Information technology outsourcing: Asset transfer and the role of contract. MIS Quart. 41(3):959–973.Crossref, Google Scholar
- (1999) Cooperative investments and the value of contracting. Amer. Econom. Rev. 89(1):125–147.Crossref, Google Scholar
- (2016) Better to best. AL&T Mag. (June 27). Accessed March 12, 2021, https://api.army.mil/e2/c/downloads/430914.pdf.Google Scholar
- (2008) A bargaining perspective on strategic outsourcing and supply competition. Strategic Management J. 29(8):819–839.Crossref, Google Scholar
- (2015) Renegotiation outsourcing contracts: What works and why. Accessed March 12, 2021, https://nearshoreamericas.com/successfully-renegotiate-outsourcing-contracts/.Google Scholar
- Dermdaly (2009) The problem with “revenue share.” Accessed March 12, 2021, https://tapadoo.com/the-problem-with-revenue-share/.Google Scholar
- (2010) Design and analysis of contracts for software outsourcing. Inform. Systems Res. 21(1):93–114.Link, Google Scholar
- (2016) Scottish police and Accenture terminate IT systems contract. Comp. Weekly (July 4). Accessed March 12, 2021, https://www.computerweekly.com/news/450299611/Scottish-police-terminates-IT-systems-contract-with-Accenture.Google Scholar
- (2012) IT outsourcing contracts and performance measurement. Inform. Systems Res. 23(1):129–143.Link, Google Scholar
- (2012) Renegotiation outsourcing contracts to fit new reality. Comp. Weekly (October 22). Accessed March 12, 2021, https://www.computerweekly.com/news/2240168932/Renegotiating-outsourcing-contracts-to-fit-new-reality.Google Scholar
- Fujitsu (2004) Whitbread sign five-year network contract with Fujitsu. Accessed March 12, 2021, https://www.fujitsu.com/ie/news/pr/2004/fs-20040608-01.html.Google Scholar
- Fujitsu (2009) Whitbread PLC renews network contract with Fujitsu. Accessed March 12, 2021, https://www.fujitsu.com/uk/news/pr/fs-20090303-review.html.Google Scholar
- (2008) Business familiarity as risk mitigation in software development outsourcing contracts. MIS Quart. 32(3):531–542.Crossref, Google Scholar
- (2017) State, HP settle on failed $49m computer contract. Detroit News (April 25). Accessed March 12, 2021, https://www.detroitnews.com/story/news/local/michigan/2017/04/25/state-hp-settle-failed-computer-contract/100909770/.Google Scholar
- (2017) Drawing a line in the sand: Commitment problem in ending software support. MIS Quart. 41(4):1227–1247.Crossref, Google Scholar
- (1979) Time-dependent error-detection rate model for software reliability and other performance measures. IEEE Trans. Reliability 28(3):206–211.Crossref, Google Scholar
- (2010) The role of contracts on quality and returns to quality in offshore software development outsourcing. Decision Sci. 41(3):491–516.Crossref, Google Scholar
- (2008) On vendor preferences for contract types in offshore software projects: The case of fixed price vs. time and materials contracts. Inform. Systems Res. 19(2):202–220.Link, Google Scholar
- (2020) The four most popular types of outsourcing contracts. Accessed March 12, 2021, https://www.future-processing.com/blog/the-3-most-popular-types-of-outsourcing-contracts/.Google Scholar
- (2006) Renegotiation of concession contracts: A theoretical approach. Rev. Industry Organ. 29(1-2):55–73.Crossref, Google Scholar
- (2013) Multilateral bargaining and downstream competition. Marketing Sci. 32(3):411–430.Link, Google Scholar
- (2005) Whitbread integrates hotel systems for £2.25m. Comp. Weekly (November 15). Accessed March 12, 2021, https://www.computerweekly.com/news/2240075811/Whitbread-integrates-hotel-systems-for-225m.Google Scholar
- (2008) Relative importance, specific investment and ownership in interorganizational systems. Inform. Tech. Management 9(3):181–200.Crossref, Google Scholar
- (2015) Quantum computing research carries on at Google and NASA. Fortune (September 28), https://fortune.com/2015/09/28/google-nasa-quantum-computer/.Google Scholar
- (1990) Property rights and the nature of the firm. J. Political Econom. 98(6):1119–1158.Crossref, Google Scholar
- (2016) SAP wins $17.5 million Army contract to support ERP, financial programs. Accessed March 12, 2021, https://washingtontechnology.com/articles/2016/03/22/sap-army-contract.aspx.Google Scholar
- (1998) Software cost estimation using economic production models. J. Management Inform. Systems 15(1):143–163.Crossref, Google Scholar
- (2017) Seven reasons why you should renegotiation your outsourcing relationships. Accessed March 12, 2021, https://www.bestpracticegroup.com/renegotiate-outsourcing-relationship/.Google Scholar
- (2011) Optimal enhancement and lifetime of software systems: A control theoretic analysis. Production Oper. Management 20(6):889–904.Crossref, Google Scholar
- (2012) Post-release testing and software release policy for enterprise-level systems. Inform. Systems Res. 23(3-part-1):635–657.Link, Google Scholar
- (2017) Economics of public beta testing. Decision Sci. 48(1):150–175.Crossref, Google Scholar
- (2013) NASA and Google partner to work with a D-Wave quantum computer. Forbes (May 16), https://www.forbes.com/sites/alexknapp/2013/05/16/nasa-and-google-partner-to-purchase-a-d-wave-quantum-computer/?sh=3d0cc8de67da.Google Scholar
- (2016) Five reasons to love time & material and avoid the fixed-price model. Accessed March 12, 2021, https://brainhub.eu/blog/5-reasons-to-love-time-materials-avoid-fixed-cost-model/.Google Scholar
- (2017) Time-and-materials s fixed price: Which to choose for your project? Accessed March 12, 2021, https://medium.com/@Eugeniya/time-and-materials-vs-fixed-price-which-to-choose-for-your-project-11dc6adc758b.Google Scholar
- KPMG (2018) Global IT-BPO outsourcing deals analysis: Annual analysis for 2017. Accessed March 12, 2021, https://assets.kpmg/content/dam/kpmg/in/pdf/2018/05/KPMG-Deal-Tracker-2017.pdf.Google Scholar
- (2004) A decision model for software maintenance. Inform. Systems Res. 15(4):396–412.Link, Google Scholar
- (2017) A study of enterprise software licensing models. J. Management Inform. Systems 34(1):177–205.Crossref, Google Scholar
- (2016a) Effects of IT-enabled monitoring systems in online labor markets. Proc. 37th Internat. Conf. Inform. Systems (Association for Information Systems, Atlanta), https://aisel.aisnet.org/icis2016/Economics/Presentations/18/.Google Scholar
- (2016b) IT outsourcing research from 1992 to 2013: A literature review based on main path analysis. Inform. Management 53(2):227–251.Crossref, Google Scholar
- (2012) An empirical analysis of the contractual and information structures of business process outsourcing relationships. Inform. Systems Res. 23(3-part-1):618–634.Link, Google Scholar
- (2016) Behind the backlog: The problem-plagued rollout of KEES. Accessed March 12, 2021, https://www.khi.org/news/article/behind-the-backlog-of-kees-applications.Google Scholar
- (1999) Implementation and renegotiation. Rev. Econom. Stud. 66(1):39–56.Crossref, Google Scholar
- (2016) Vodafone India renews IT deal with IBM for five years. Accessed March 12, 2021, https://www.livemint.com/Industry/uxvj1Tn5sK5zT9kG7QggdO/Vodafone-India-signs-IT-deal-with-IBM-for-five-years.html.Google Scholar
- (2012) Ratio of bugs per line of code. Accessed March 12, 2021, https://www.mayerdan.com/ruby/2012/11/11/bugs-per-line-of-code-ratio.Google Scholar
- (2004) Outsourcing IT: The Global Landscape in 2004. Case Study 9-304-104 (Harvard Business School, Boston, MA).Google Scholar
- (2017) What’s the true cost of a software bug? Accessed March 12, 2021, https://crossbrowsertesting.com/blog/development/software-bug-cost/.Google Scholar
- (2018) What are the different types of software development contracts? Accessed March 12, 2021, https://www.cognitiveclouds.com/insights/what-are-the-different-types-of-software-development-contracts/.Google Scholar
- (2018) What technology risks can cause software outsourcing to fail? CIO (Framingham MA). Accessed March 12, 2021, https://www.cio.com/article/3269259/what-technology-risks-can-cause-software-outsourcing-to-fail.html.Google Scholar
- (2017) How IT service management delivers value to the digital enterprise. Forbes (March 16), https://www.forbes.com/sites/forbesinsights/2017/03/16/how-it-service-management-delivers-value-to-the-digital-enterprise/?sh=53b76f34732e.Google Scholar
- (1989) Does imperfect debugging affect software reliability growth? Proc. 11th Internat. Conf. Software Engrg. (ACM Press, New York), 237–244.Google Scholar
- (2018) Innovation, openness, and platform control. Management Sci. 64(7):3015–3032.Link, Google Scholar
- (1999) Software release policies with gain in reliability justifying the costs. Ann. Software Engrg. 8(1):147–166.Crossref, Google Scholar
- (1979) How competitive forces shape strategy. Harvard Bus. Rev. 57(2):137–145.Google Scholar
- ReportLinker (2020) Global outsourcing market, 2020-2024 (Infiniti Res. Ltd). Accessed March 12, 2021, https://www.reportlinker.com/p02673147/Global-IT-Outsourcing-Market-in-Capital-Markets.html.Google Scholar
- (1992) Incomplete contracting issues in information systems development outsourcing. Decision Support Systems 8:459–477.Crossref, Google Scholar
- (2010) Contracting for collaborative services. Management Sci. 56(5):849–863.Link, Google Scholar
- (2015) Neuro-genetic approach on logistic model-based software reliability prediction. Expert Systems Appl. 42(10):4709–4718.Crossref, Google Scholar
- (2017) IT outsourcing contracts renegotiation: When? Why? How? Accessed March 12, 2021, https://www.tiespecialistas.com.br/it-outsourcing-contracts-renegotiation-when-why-how/.Google Scholar
- (2013) Why some U.S. companies are giving up on outsourcing. Forbes (January 16), https://www.forbes.com/sites/ciocentral/2013/01/16/why-some-u-s-companies-are-giving-up-on-outsourcing/?sh=1af9592065af.Google Scholar
- Shared Services and Outsourcing Network (2012) Top ten tips for a smooth contract renegotiation. Accessed March 12, 2021, https://www.ssonetwork.com/business-process-outsourcing/articles/top-ten-tips-for-a-smooth-contract-renegotiation.Google Scholar
- (2012) Contractual flexibility, rent seeking, and renegotiation design: An empirical analysis of information technology outsourcing contracts. Management Sci. 58(7):1388–1407.Link, Google Scholar
- (2012) What are the most important and mature cross platform mobile tools? Accessed March 12, 2021, https://www.infoq.com/research/cross-platform-mobile-tools/.Google Scholar
- (2010) Systems development ambidexterity: Explaining the complementary and substitutive roles of formal and informal controls. J. Management Inform. Systems 27(2):87–126.Crossref, Google Scholar
- (2020) Shift your DevOps into high gear: Key models to consider. Accessed March 12, 2021, https://techbeacon.com/devops/shift-your-devops-high-gear-key-models-consider.Google Scholar
- (1995) Market provision of custom software: Learning effects and low balling. Management Sci. 41(8):1343–1352.Link, Google Scholar
- (2020) State of software development in 2020. Accessed March 12, 2021, https://codingsans.com/state-of-software-development-2020.Google Scholar
- (2014) Software Reliability Modeling Fundamentals and Applications (Springer, Cham, Switzerland).Crossref, Google Scholar

